Despite being the most valuable company in the world, Nvidia has a weight of just 2.1% of the Dow Jones Industrial Average.
At the time of this writing, Nvidia (NVDA 2.15%) is up by 186.6% year to date, pole-vaulting its market capitalization above those of Apple and Microsoft to make it the most valuable company in the world (again). But Friday’s 3.2% sell-off in Nvidia left Apple within a whisker of claiming the No. 1 spot back.
For now, though, Nvidia remains the largest component of the S&P 500 (^GSPC 0.56%) and the Nasdaq-100, which is comprised of the 100 largest non-financial companies in the Nasdaq Composite. Nvidia was added to the Dow Jones Industrial Average (^DJI 0.42%) earlier this month. Yet in terms of its weighting in the Dow, it’s ranked 21 of the 30 components, at just 2.1% of the index.
The reason why Nvidia accounts for such a small piece of the Dow’s calculation…
